Latest Lockdowns Will Affect Retail Sales

The latest numbers from Statistics Canada for November 2020 show that total retail sales have recently hit the highest growth rates in three years, says Ed Strapagiel, a retail consultant. Nevertheless, due to declines earlier in the year, 2020 overall retail sales will likely end up at about down about one per cent. Furthermore, things don't look good going into December and January due to reinstated COVID lockdowns and even curfews. The collapse of retail sales in the second quarter of 2020 shows what could happen. There is a school of thought that all the money consumers are not spending on restaurants, theatres, travel, and other entertainment is getting saved and will eventually work its way back to the retail market, perhaps in late 2021 after the COVID pandemic substantially dissipates. There is no precedent for this, however, so it still remains to be seen. Once it's safe to go shopping again, there will likely be an uptick in retail sales, but no one knows how much that will be nor how long it might last.